KBRA Publishes CRE CLO Trends Spotlight
NEW YORK--(BUSINESS WIRE)--Oct 3, 2018--Kroll Bond Rating Agency (KBRA) releases CRE CLO Trends Spotlight.
The CRE CLO market has experienced robust issuance of $9.9 billion across 19 deals YTD 2018. This represents a 29% increase over FY 2017 and, when the dust settles on 2018, issuance will likely exceed last year’s volume by over 100%. In conjunction with the activity, the average deal size has also been on the rise, from an average of $427 million in FY 2017 to $521 million YTD 2018.
Given the rapid growth in issuance, we felt it was good time to summarize some of the trends we have observed on recently issued deals. To do so, we focused on securitizations we rated since the beginning of 2017 in regard to Deal and Property Trends, Loan and Transaction Structures, and Loan performance.
In summary, KBRA has observed increasing levels of leverage and tightening loan spreads since the beginning of last year. At the same time, the amount of future funding present in deals has been on the rise – which is indicative of the level of transition of the underlying real estate collateral. Furthermore, the issuance of Managed deals has become more common.
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KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus, is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.
View source version on businesswire.com:https://www.businesswire.com/news/home/20181003005581/en/
Roy Chun, Senior Director
Nitin Bhasin, CFA, Senior Managing Director
Eric Thompson, Senior Managing Director
KEYWORD: UNITED STATES NORTH AMERICA NEW YORK
INDUSTRY KEYWORD: PROFESSIONAL SERVICES BANKING FINANCE
SOURCE: Kroll Bond Rating Agency
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PUB: 10/03/2018 10:41 AM/DISC: 10/03/2018 10:41 AM